Paul Keckley of Navigant Consulting summarizes the rapid pace of consolidation within U.S. health care:
“Go big or get out” seems to be a mandate across the health system these days. Across the continuum of healthcare products and services, consolidation is a given. Consider:
- Total enrollment of the top 10 insurers increased from 20% in 2003 to 46% in 2011
- The share of total revenues for pharmacy benefits management services for the top 2 Pharmacy Benefit Managers increased from 27% in 1999 to 61% in 2012
- The numbers of physicians practicing in groups of 5 or fewer physicians decreased from 66% in 2001 to 51% in 2012, while physicians in groups of 100 or more increased from 3% to 12% in the same period
- The employment of physicians in medical practices owned by hospitals increased from 24% in 2004 to 49% in 2011
- The numbers of hospitals in multi-hospital systems increased from 53% in 2003 to 60% in 2013.